VW and Toyota in engine alliance

27 August 1999

According to Japanese press reports, Volkswagen AG and Toyota Motor Corp. have agreed to supply each other with direct injection (DI) diesel and gasoline engines.

Under the agreement, Toyota would make available its gasoline DI engine technology to Volkswagen. The deal includes licensing of Toyota's patents and installing of Toyota-supplied engines starting next year

In return, Volkswagen would supply Toyota with diesel DI engines. The engines would be installed on Toyota's luxury cars sold in Europe.

The deal has not been yet confirmed by VW and Toyota. An official announcement is expected at the Tokyo Motor show in October.